A fortnightly newsletter covering developments in the Chinese media industry. The newsletter is free and is also available for download at G2Mi.com. G2Mi.com is a leading website providing information and analysis on the global media industry.

1. China Media Monitor
| Fortnightly newsletter on the China Media industry | Issue No. 4, Published 1st June 2009 | Published by Heernet Ventures Limited (heernet.com) |
News
CCTV-IMG Sports Management receives regulatory approval
China Communications Services Corp plans to acquire 3 companies for CNY115 million
China Telecom Corporation introduces mobile payment service
Shanghai Media Group launches Enjoyoung Media Co. Ltd
mInfo forms partnership with China Telecom
Harlequin Enterprises Ltd launches digital comics
Telefonica de Espana plans to acquire additional 1.3% stake in China Unicom
Chinese media industry generates revenue of CNY166.72 billion in 2008
CSL 1010 launches Expresso mobile service
SmarTone-Vodafone launches home broadband and phone service
M2B forms partnership with Baidu.com
3 Hong Kong launches visual voicemail service
TripAdvisor enters agreement with eLong.com, etpass.com and Byecity.com
Data
Share price performance
Chinese media market coverage
Heernet Ventures publishes this newsletter as part of its research coverage of the Chinese media industry. You can access more
research on the Chinese media industry from our research website at G2Mi.com.
If you are a media company or financial investor seeking growth opportunities in the Chinese media industry, we can assist you to
ensure that you are successful in identifying and executing the best opportunities. With dedicated teams in both Europe and Asia,
we are well placed to provide ‘on the ground’ assistance and support.
We can help you understand the structure of the Chinese media industry and the key challenges that exist for foreign investors.
We can also assist with deep analysis of key industry segments and assist you in both identifying and negotiating with suitable,
local companies.
For an initial discussion, contact Harjinder Singh-Heer on +44 (0) 208 180 7223 or by email on harjinder@heernet.com.
© Heernet Ventures Limited 2009. All Rights Reserved

2. News
CCTV-IMG Sports Management receives regulatory
approval
mInfo forms partnership with China Telecom
Date 29 May, 2009
Date 26 May, 2009
CCTV-IMG Sports Management has received approval to
mInfo, a mobile search service provider, has entered into a
begin operations in China. The company will broadcast and
strategic partnership with China Telecom, a
manage the China Open tennis tournament in Beijing in
telecommunications operator. According to the terms of the
October and Chengdu Open tennis tournament in Chengdu
partnership, China Telecom will offer mInfo’s complete
in November. CCTV-IMG Sports Management Co is a joint
search services to its CDMA/CDMA2000 and PHS wireless
venture between IMG Worldwide Inc, a sports management
subscribers. mInfo search services offer online content
company, and China Central Television (CCTV), a
through SMS, WAP and instant messenger under the mInfo
television broadcaster, formed in August 2008.
and Guanxi brands.
China Communications Services Corp plans to
acquire 3 companies for CNY115 million Harlequin Enterprises Ltd launches digital comics
Date 28 May, 2009 Date 25 May, 2009
China Communications Services Corp, a subsidiary of China Harlequin Enterprises Ltd, a romantic novel publisher, has
Telecom Corp Ltd, has announced that it plans to acquire 3 launched a digital version of its novels in cooperation with
companies for CNY115 million. The 3 companies operate SoftBank Creative Corp, a Japanese digital content provider.
in logistics services, technology, system integration and The digital novels can be accessed on mobile phones and are
applications, and telecom infrastructure services. It will currently offered in Japan.
acquire the 3 companies for CNY64.14 million, CNY33.89
million and CNY16.51 million. China Communications
Telefonica de Espana plans to acquire additional
Services Corp Ltd provides telecom infrastructure and other
1.3% stake in China Unicom
services.
Date 25 May, 2009
Telefonica de Espana, a Spanish telecom operator, is
China Telecom Corporation Ltd introduces mobile planning to acquire an additional 1.3% stake in China
payment service Unicom, a telecommunications operator in China, for
Date 28 May, 2009 US$1.16 billion. Following the acquisition Telefonica de
China Telecom Corporation Ltd has launched a 3G mobile Espana will have a 5.5% stake in China Unicom.
payment service under the eSurfing brand. The mobile
payment service helps China Telecom subscribers to make
online payments for mobile subscriptions and public Chinese media industry generates revenue of
CNY166.72 billion in 2008
utilities.
Date 22 May 2009
According to the State Administration of Radio Film and
Shanghai Media Group launches Enjoyoung Media Television, China’s media industry generated revenues of
Date 27 May, 2009 CNY166.72 billion in 2008, an annual increase of 20.49%.
Shanghai Media Group, a diversified media company, has The penetration rate for radio and television increased to
launched Enjoyoung Media Co. Ltd, a fashion media 96%. Total revenue included CNY135 billion from the
subsidiary. Enjoyoung Media Co. Ltd offers content for radio and television industry and CNY8.43 billion from the
broadcast on Channel Young, a fashion channel operated by film industry. Advertising revenue from the radio and
Shanghai Media Group. The subsidiary provides content television sectors was CNY70.17 billion, an annual increase
through Internet and mobile broadcasting. of 16.85%.
© Heernet Ventures Limited 2009. All Rights Reserved

3. CSL 1010 launches Expresso mobile service (eLong.com, etpass.com and Byecity.com), which will
Date 21 May, 2009 launch pay-per-click advertisements on Daodao.com, a
Chinese website operated by TripAdvisor. Reviews on
CSL 1010, a mobile operator based in Hong Kong, has
TripAdvisor will also be available on the review sections of
launched Expresso, a mobile service with a monthly charge
those 3 websites. eLong.com and etpass.com operate in the
of HKD55. Expresso offers content from Reuters, South
reservation of hotels and air tickets while Byecity.com
China Morning Post, Bloomberg, Time Out Hong Kong
mainly operates in outbound tourism.
(What’s on), BBC News, the New York Times and Australia
Network News. The service also offers a MyNet feature,
which provides connectivity to Facebook, MSN Messenger,
Perfect World invests CNY15 million in Chengdu
Gmail and Hotmail.
Yewang Technology Development Company
Date 20 May, 2009
SmarTone-Vodafone launches home broadband Perfect World, an online game developer, has announced a
and phone service CNY15 million investment in Chengdu Yewang Technology
Date 21 May, 2009 Development Company in an effort to increase its online
SmarTone-Vodafone has launched a home broadband and community business. Chengdu Yewang Technology
phone service. The service will provide broadband speeds Development Company, based in Chengdu, develops and
of between 2Mbps and 7.2Mbps and will be delivered operates web–based games.
through an HSPA network for a monthly charge of
HKD148, with a contract period of 24 months. Users can
consolidate the SmarTone-Vodafone services into a single China Youth Media Inc launches sports channel
account and manage it online. Date 19 May, 2009
China Youth Media, Inc., a marketing and media company,
has launched Koobee Fight, an online sports channel on its
M2B forms partnership with Baidu.com
Koobee Campus Network. Koobee Fight targets college
Date 21 May, 2009 students and broadcasts international fighting content
M2B World Asia Pacific, a broadband services provider, has including professional mixed martial arts and top rank
entered into a strategic partnership with Baidu.com. boxing. China Youth Media, Inc. mainly offers youth
According to the partnership, Baidu will provide online content.
advertisement assistance to M2B for its WOWtv video
website, to which Baidu’s search engine users will have
access. M2B is a subsidiary of US-based AMARU. Baidu Inc forms partnership with Best Tone
Information Service Corp
Date 19 May 2009
3 Hong Kong launches visual voicemail service Baidu Inc, a search engine, has entered into a partnership
Date 21 May, 2009 with Best Tone Information Service Corp Ltd to offer
3 Hong Kong, a mobile operator and subsidiary of wireless search services to China Telecom’s 3G users.
Hutchison Telecommunications Ltd, has launched the first According to the agreement, Best Tone will offer Baidu’s
visual voicemail service in Hong Kong. The service is search services on its service platform. Best Tone
based on technology offered by Comverse, which provides Information Service Corp Ltd is a wholly owned subsidiary
visual voicemail solutions such as ringback tones and call of China Telecom Corp Ltd.
completion worldwide.
TripAdvisor enters agreement with eLong.com,
etpass.com and Byecity.com
Date 21 May, 2009
TripAdvisor, a US-based travel website, has entered into a
strategic agreement with 3 Chinese travel websites
© Heernet Ventures Limited 2009. All Rights Reserved

4. Artificial Life Inc enters agreement with China
Telecom
IDGVC Partners and Infiniti Capital invest US$20
Date 18 May 2009 million in One Net Entertainment Ltd
Artificial Life, Inc, a web-based value-added services Date 18 May, 2009
provider, has entered into an agreement with China Telecom IDGVC Partners and Infiniti Capital have each invested
through which Artificial Life will provide online US$10 million in One Net Entertainment, a Chinese mobile
applications, games, entertainment and mobile broadband gaming developer, through Leo Technology Ltd, its parent
services for China Telecom’s 3G network subscribers. company. One Net Entertainment develops mobile and
Artificial Life develops, hosts and maintains China online games through its 798uu.com and 798game.com
Telecom’s 3G WAP portal. websites. IDGVC has invested US$10 million in the form
of convertible notes and Infiniti Capital has made an equity
investment of US$10 million.
China Unicom launches trial version of 3G services
Date 18 May 2009
China Unicom has announced the launch of a trial version of CTM launches Wi-Fi broadband service for
a W-CDMA 3G network. The trial network is currently residents
offered in 55 cities and will be available in 284 cities by the Date 16 May, 2009
end of September. The 3G network offers high speed Companhia de Telecomunicacoes de Macau Ltd. (CTM), a
wireless data downloads, video calling and mobile TV to telecom operator, has launched a Wi-Fi broadband service
China Unicom’s subscribers. for residents. It offers a wireless broadband service at home
and at CTM Wi-Fi hotspots in Macau. The service provides
unlimited broadband usage with a download speed of 12MB
for a monthly charge of MOP330.
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© Heernet Ventures Limited 2009. All Rights Reserved

5. China Media Monitor
Share Price data
Company name Reuters Bloomberg Currency Current % Change
Code Code price
1 mth 6 mth 12 mth
Diversified Media
Sing Tao News Corporation Limited 1105.HK 1105:HK HK$ 0.43 28.36 30.30 -61.95
TOM Group 2383.HK 2383:HK HK$ 0.45 18.42 69.81 -9.09
Broadcasting
Hunan TV & Broadcast Intermediary 000917.SZ 000917:CH CNY 16.34 1.24 56.21 -15.42
Phoenix Satellite Television Holdings 2008.HK 2008:HKG HK$ 1.20 20.00 79.10 -6.25
Shaanxi Broadcast & TV Network 600831.SS 600831:SHH CNY 8.05 18.38 63.26 -9.44
Publishing
Ming Pao Enterprise Corp Ltd 0685.HK 685:HK HK$ 1.16 9.43 -2.52 -41.12
Next Media Limited 0282.HK 282:HKG HK$ 1.28 33.33 34.74 -61.68
Internet
Baidu BIDU.O BIDU:US US$ 258.20 16.73 80.88 -25.15
Alibaba 1688.HK 1688:HK HK$ 15.18 73.49 253.02 6.90
i-Cable Communications 1097.HK 1097:HK HK$ 0.83 43.10 27.69 -30.25
Shanda Interactive Entertainment Ltd SNDA.O SNDA:US US$ 55.00 19.28 142.93 69.96
Sina Corporation SINA.O SINA:US US$ 28.79 5.73 -4.26 -44.04
Sohu.com Inc. SOHU.O SOHU:US US$ 58.54 18.60 19.93 -29.75
Tencent Holdings Limited 0700.HK 700:HK HK$ 86.40 29.05 103.29 26.87
Online Gaming
China Mass Media International
Advertising Corporation CMM.P CMM:US US$ 3.50 37.25 62.79 -82.50
Giant Interactive group Inc GA.N GA:US US$ 7.54 -11.50 19.12 -44.52
Kingsoft Corporation Limited 3888.HK 3888:HK HK$ 5.12 47.55 130.63 26.42
NetDragon Websoft Inc. 0777.HK 777:HK HK$ 5.35 3.88 103.42 -51.97
Outdoor Advertising
Clear Media 0100.HK 100:HK HK$ 3.05 34.36 52.50 -56.43
VisionChina Media VISN.O VISN:US US$ 6.01 -4.15 3.62 -69.92
© Heernet Ventures Limited 2009. All Rights Reserved

6. China Media Monitor
Deal Sheet
A summary of key deals and joint ventures over the last 2 months.
Date Sub Sector Investor Investee Terms Details
Ctrip.com International Ltd provides online travel services,
Home Inns & Hotels HK$50 million
offering accommodation, airline tickets and package tours in
May-09 Online Media Ctrip.com (China) Management Inc. (additional 9.52%
China. Home Inns & Hotels Management Inc. develops and
(China) stake)
manages economy hotels in China under the Home Inn brand.
China Mobile is a telecommunication operator that offers fixed,
Far EasTone HK$4.1 billion
April-09 Telecoms China Mobile (China) wireless and broadband services in China. Far EasTone
Telecoms (12% stake)
Telecommunications is a Taiwan-based telecom operator.
Pearson PLC is an international media company engaged in
education, business and consumer publishing in the United
Pearson PLC (United Wall Street English US$145 million
April-09 Publishing Kingdom. Wall Street English is a Chinese subsidiary of Wall
Kingdom) (China) (100% stake)
Street Institute and operates 39 English language training
centres in 7 Chinese cities.
China Broadband, Ltd. provides cable broadband services and
AdNet Media publishes digital and analogue programme guides in the
April-09 Broadband China Broadband, Inc. Technologies Co. n.d Shangdong province of China. AdNet Media Technologies Co.
Ltd. Ltd. is a Beijing-based provider of advertising content to
Internet cafes.
© Heernet Ventures Limited 2009. All Rights Reserved

7. China Media Monitor
Published by:
Heernet ventures limited
London UK
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© Heernet Ventures Limited 2009. All Rights Reserved